To become a leading diversified resources company, Chinalco has been expanding its metal product portfolio. Chinalco is currently expanding its product offering to include sponge titanium and titanium alloys.
In 2006, Chinalco established Fushun Titanium Co Ltd, a joint venture with Fushun Aluminum Plant. Chinalco owns a 70% share of this joint venture. Most of the operating assets of the joint venture were transferred from Fushun Titanium Plant, a subsidiary of Fushun Aluminum Plant. The production facilities of the joint venture are operated under ISO9001:2000. Fushun Titanium Co Ltd produces high-quality sponge titanium, which conforms to or exceeds many industry standards such as ASTM International in the U.S. and Japanese Industrial Standards.
In 2008, Chinalco established Heilongjiang Jiatai Titanium Co Ltd, a joint venture with Aricom plc. Under the terms of the joint venture, Aricom will secure the supply of ilmenite ore for the joint venture, while Chinalco will exclusively own the sales rights to the sponge titanium produced by the joint venture. It is intended that the joint venture will develop and operate a sponge titanium plant in China with a planned total annual capacity of 15,000 tonnes by stage 1. Beyond stage 1, the joint venture parties may pursue an increase in capacity of the plant to 30,000 tonnes per annum, depending on future demand (stage 2). Chinalco currently has a 35% interest in the joint venture. If the project progresses to stage 2, Chinalco will have the option to increase its interest in the joint venture to become a controlling shareholder upon completion of that stage.
In 2007, Chinalco produced 5,052 tonnes of titanium and titanium alloys. With increased capacity from its joint ventures, Chinalco expects to be a leading titanium producer in the Chinese market. Moreover, as China plans to produce large commercial aircraft domestically by 2020, Chinese demand for titanium alloys and sponge titanium is expected to increase dramatically. Chinalco expects to be a major supplier of aluminum alloys and titanium alloys to the Chinese aircraft industry.
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